Getting a Small Business Loan When the Bank Says No

Split funding allows merchants to pay back the loan using a variable percentage of their daily credit card sales. The split funding keeps the benefits of a true business loan, while offering the flexibility of aligning loan payback with seasonal or varying sales, according to the company's website.

The daily payments prevent the "snowball effect often caused by missing larger monthly payments," according to the company's website.

"We're looking at that business's bank account every single day and that allows you to keep closer tabs. And in the event there is something going on, we can adjust the terms accordingly to work with the business owner to get through it," Breslow says.

"We're still servicing a small section of the market. As it gets more mainstream and more widely accepted, you will see it more widely deployed," Breslow adds.

-- Written by Laurie Kulikowski in New York.

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